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The city of Minneapolis saw its credit rating drop this week from Aaa to Aa1. Moody's Investors Service cited pension liability, declining property values and above average debt levels as reasons for the drop.

"The new methodology is overly simplistic and puts too much emphasis on long-term pension obligations," Minneapolis Chief Financial Officer Kevin Carpenter wrote in an e-mail informing the city's elected leaders of the downgrade. Carpenter argued the city's finances have actually improved, not deteriorated.

What will the downgrade mean for the city? And how might this relate to the problems in Detroit?